Reference... HKK 6/548/1
62
Mr. Milne (Commodities Department)
I will not try to involve you too deeply in the question of the UK/Hong Kong Wide Sheeting and Sheets Agreement which is a bilateral matter, but I should be grateful if you would look at (54) on Part B and (61) on this Part of the file.
2. I think that when Mr. Carter returns he will wish to refer to higher authority the issue of growth over which you will see the Board of Trade at Mr. Carey's level, have refused Hong Kong's request. We think Hong Kong has a good case and my own view is that the Board of Trade would have to admit it. if it were not for the point at (X) in paragraph 6 of Mr. Carey's letter. Strictly speaking it is irrelevant to our case whether it would tilt the balance against India to grant Hong Kong the growth rate to which they believe they are entitled, but I can see that it must greatly influence the Board of Trade's thinking. On your side can you see any insuperable difficulty in the way of meeting Hong Kong's wishes arising from problems of compari- son which might then occur with reference to India?
3. This is a complicated matter but I should be grateful if you would return the papers fairly soon because it remains to sign between HMG and Hong Kong a memorandum of understanding about the sheeting agreement which has been outstanding for various reasons for a year.
Jun. Stewart
Mov
(H. H. Stewart) Hong Kong Department
12 August, 1969
We discussed. I know
at present of
no insuperable &fpralten
aut
at 'X' above.
India mujht
be
Caure
appiered if she
hear of any apperent "tilting of the
balance against her
and
in
favor of
Hovy Kary. But
one
would need
to
any
Sunch
W
to
know whether
jualified by the facts. The proof, it seems
grievance
1
to me, hats with
The